The $2.75 billion buyout of Aztar in recent days means that the Kentucky-based Columbia Sussex Corp. is the owner of the Tropicana (photo tour), and they already plan to demolish it and remodel the 34-acre site across from MGM Grand and opposite the Excalibur over the next two years. They've already submitted plans to our Clark County Planning Commission to spend another $2 billion for towers with 9,276 hotel rooms and 948 condo-hotel units. So, when completed the property will have 10,224 guest rooms, 85,000 sq.ft of casino games plus 644,000+ sq.ft for conventions and meetings and 270,000+ sq.ft of retail shopping. The new owners said they wouldn't shut down the Tropicana entirely during the new construction phase. If all goes as planned after everything but the Paradise and Island Towers and the Showroom gets dynamited to destruction the Tropicana will then beat out MGM's new $7 billion City Center colossus and Boyd Gaming's $4 billion Echelon Place on the old Stardust site to claim title to the largest hotel resort in the world!! I'm betting MGM won't stand for that and they will add more to their center-Strip construction already well underway!
CASINO JACKPOT
When you analyze statewide casino resort hotel revenue you realize why a company would spend $4 billion+ to buy, then blowup and rebuild a Strip property! The 2006 financials just released by the Nevada Gaming Board show just over $24 billion in revenues last year. That's a 17% increase from the previous year and represents over $2 billion a month and more than any other industry in the USA! After taxes it was a bottom line bonanza profit of $2 billion. The figures break a 9-year-state record and show for the first time that dining, entertainment, shopping made up over 50% of the revenues and gambling in our 274 statewide casinos had dropped to below half of the overall numbers. Hotel room rates of just under $5 billion represent only 20% of the totals with the Strip rising to a record 94% year-round occupancy level and average rates increasing up to a record year-round average of $137 each night! It's not so much that the mind-numbing numbers are so staggering but the fact that already for this first month of 2007 they are climbing still higher!
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1. We just got home from Las Vegas, and we both agreed playing blackjack at the Tropicana was the best place to play in town. The dealers were freindly, helpful and always smiling. Now only to get home and find out our fav place is going to be replaced by some huge hotel and casino. The island buffet was great. We visited alot of casinos over the 3 days we were there, the Tropicana was the only one we went back to. Its a shame they are tearing down this beautiful place.
Michael at 8:34PM on Jan 20th 2007